PRA Group, Inc., a financial and business services company, engages in the purchase, collection, and management of portfolios of nonperforming loans in the Americas and Europe.
Moderate growth potential and overvalued.
Share Price & News
How has PRA Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: PRAA has not had significant price volatility in the past 3 months.
7 Day Return
US Consumer Finance
1 Year Return
US Consumer Finance
Return vs Industry: PRAA exceeded the US Consumer Finance industry which returned 14.3% over the past year.
Return vs Market: PRAA underperformed the US Market which returned 19.3% over the past year.
Price Volatility Vs. Market
How volatile is PRA Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall StInvestors Who Bought PRA Group (NASDAQ:PRAA) Shares Five Years Ago Are Now Down 31%
1 month ago | Simply Wall StHere's What PRA Group, Inc.'s (NASDAQ:PRAA) P/E Is Telling Us
1 month ago | Simply Wall StIs PRA Group, Inc.'s (NASDAQ:PRAA) CEO Salary Justified?
Is PRA Group undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: PRAA ($37.01) is trading above our estimate of fair value ($24.17)
Significantly Below Fair Value: PRAA is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: PRAA is poor value based on its PE Ratio (22.8x) compared to the Consumer Finance industry average (8.8x).
PE vs Market: PRAA is poor value based on its PE Ratio (22.8x) compared to the US market (18.5x).
Price to Earnings Growth Ratio
PEG Ratio: PRAA is good value based on its PEG Ratio (0.9x)
Price to Book Ratio
PB vs Industry: PRAA is overvalued based on its PB Ratio (1.5x) compared to the US Consumer Finance industry average (1.1x).
How is PRA Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PRAA's forecast earnings growth (24.2% per year) is above the savings rate (1.7%).
Earnings vs Market: PRAA's earnings (24.2% per year) are forecast to grow faster than the US market (14.2% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: PRAA's revenue (6.8% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: PRAA's revenue (6.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: PRAA's Return on Equity is forecast to be low in 3 years time (9.8%).
How has PRA Group performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PRAA has a large one-off gain of $26.6M impacting its September 30 2019 financial results.
Growing Profit Margin: PRAA's current net profit margins (7.5%) are lower than last year (15.8%).
Past Earnings Growth Analysis
Earnings Trend: PRAA's earnings have declined by -18.6% per year over the past 5 years.
Accelerating Growth: PRAA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: PRAA had negative earnings growth (-47.1%) over the past year, making it difficult to compare to the Consumer Finance industry average (11.4%).
Return on Equity
High ROE: PRAA's Return on Equity (7.4%) is considered low.
Return on Assets
Return on Capital Employed
How is PRA Group's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Inventory Level: PRAA has a low level of unsold assets or inventory.
Debt Coverage by Assets: PRAA's debt is covered by short term assets (assets are 1.3x debt).
Financial Institutions Analysis
Asset Level: PRAA's level of assets compared to its equity is low.
Allowance for Bad Loans: Insufficient data to determine if PRAA has a sufficient allowance for bad loans.
Low Risk Liabilities: PRAA reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if PRAA has an acceptable proportion of non-loan assets held.
Low Risk Deposits: PRAA has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if PRAA has an appropriate level of bad loans.
What is PRA Group's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate PRAA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate PRAA's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if PRAA's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if PRAA's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of PRAA's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Kevin Stevenson (54yo)
Mr. Kevin P. Stevenson co-founded PRA Group, Inc. (Formerly known as Portfolio Recovery Associates, Inc.) in 1996 and has been its President since August 2016 and Chief Executive Officer since June 1, 2017 ...
CEO Compensation Analysis
Compensation vs Market: Kevin's total compensation ($USD3.92M) is about average for companies of similar size in the US market ($USD3.81M).
Compensation vs Earnings: Kevin's compensation has been consistent with company performance over the past year.
|Executive VP & CFO||3.5yrs||US$1.82m||0.018% $305.4k|
|Senior VP||4.1yrs||US$1.21m||0.0043% $72.8k|
|Executive Vice President of Europe & Corporate Development||2.1yrs||US$1.78m||0.10% $1.7m|
|Executive Vice President of Americas Core||14.1yrs||US$1.82m||0.079% $1.3m|
|Executive Chairman||17.9yrs||US$2.99m||0.61% $10.2m|
|Chief Technology Officer||3.8yrs||no data||no data|
|Chief Information Officer & Senior VP||4.8yrs||no data||no data|
|Vice President of Investor Relations||0yrs||no data||no data|
|Chief Compliance Officer||5.8yrs||no data||0.0038% $63.9k|
Experienced Management: PRAA's management team is considered experienced (4.1 years average tenure).
|Executive Chairman||17.9yrs||US$2.99m||0.61% $10.2m|
|Independent Director||15.3yrs||US$218.09k||0.093% $1.6m|
|Lead Director||2.1yrs||US$221.53k||0.019% $315.0k|
|Independent Director||9.9yrs||US$211.84k||0.061% $1.0m|
|Independent Director||14.3yrs||US$206.22k||0.080% $1.3m|
|Independent Director||2.1yrs||US$124.98k||0.0072% $121.5k|
|Independent Director||4.1yrs||US$192.47k||0.12% $2.0m|
|Independent Director||4.5yrs||US$221.22k||0.020% $334.8k|
|Independent Director||6.7yrs||US$206.22k||0.030% $496.5k|
Experienced Board: PRAA's board of directors are considered experienced (5.6 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
PRA Group, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: PRA Group, Inc.
- Ticker: PRAA
- Exchange: NasdaqGS
- Founded: 1996
- Industry: Consumer Finance
- Sector: Diversified Financials
- Market Cap: US$1.681b
- Shares outstanding: 45.41m
- Website: https://www.pragroup.com
Number of Employees
- PRA Group, Inc.
- 120 Corporate Boulevard
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|PRAA||NasdaqGS (Nasdaq Global Select)||Yes||Common Stock||US||USD||Nov 2002|
|POV1||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Nov 2002|
PRA Group, Inc., a financial and business services company, engages in the purchase, collection, and management of portfolios of nonperforming loans in the Americas and Europe. It is involved in the acquisition of accounts that are primarily the unpaid obligations of individuals owed to credit grantors, which include banks and other types of consumer, retail, and auto finance companies. The company also acquires nonperforming loans, including Visa and MasterCard credit cards, private label and other credit cards, installment loans, lines of credit, deficiency balances of various types, legal judgments, and trade payables from banks, credit unions, consumer finance companies, telecommunication providers, retailers, utilities, automobile finance companies, student loan companies, and other debt owners. In addition, it provides fee-based services on class action claims recoveries and by servicing consumer bankruptcy accounts. The company was formerly known as Portfolio Recovery Associates, Inc. and changed its name to PRA Group, Inc. in October 2014. PRA Group, Inc. was founded in 1996 and is headquartered in Norfolk, Virginia.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/22 00:58|
|End of Day Share Price||2020/02/21 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.